Compliance Update | November 2020
KHRC launches new statewide eviction prevention program

Governor Laura Kelly announced a $35 million statewide relief initiative to keep Kansans in their homes. Tenants and landlords experiencing financial hardship as a result of the COVID pandemic may receive up to $5000 in rental assistance per tenant household. The Kansas Eviction Prevention Program (KEPP), funded through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, authorized by Governor Kelly’s Strengthening People and Revitalizing Kansas (SPARK) Taskforce, and administered by Kansas Housing Resources Corporation (KHRC), serves tenants and landlords who have missed paying or collecting at least one rent payment since April 1, 2020, due to the COVID pandemic.

The KEPP program is open to all landlords and tenants across the state. Program funds are limited and only available for a short time, and applications will be processed in the order received. Ready to learn more and apply? Visit the KEPP web page or contact KEPP@kshousingcorp.org.  
Updated COVID-19 guidance for multifamily housing
New guidance on HUD's multifamily programs addresses the CDC Moratorium on Evictions for Nonpayment of Rent, specifically the much-asked question about Hazard Pay or any extra pay essential employees receive for working during the pandemic.

This income is not excluded. As the guidance explains, "hazard pay has historically been included in income calculation and is not broadly excludable under 24 CFR § 5.609. Owners and agents should consider whether the pay increase is temporary or recurring in determining whether it will trigger an income reexamination in accordance with HUD Handbook 4350.3, REV-1 and their written recertification policies."

Also confirmed in the updated Q&A, HUD extended modified MORs until Dec. 31, 2020 (previously Sept. 30, 2020). 

KHRC welcomes new team members
Kevin Knak is our new Compliance Officer and will perform on-site Management and Occupancy reviews. 
Kariss McNeal is our Senior Finance Officer and will help process your Rent Rent Adjustments, Special Claims, and Contract Renewals. 
Special Claim Submission Forms Available Online 
KHRC has created several forms and checklists for owner/agents to aid in the preparation and submission of special claims. We highly encourage the use of these forms to ensure all required information is submitted accurately and on time. 

To access these resources: 
  1. Visit the Contract Administration page. 
  2. Scroll down to the Documents | Forms | Resources section. 
  3. Click the Financial Forms folder. 
  4. Click the Special Claims Processing documents subfolder. 
  5. Select the desired file(s) from the list of documents. 
 
Questions? Please contact us via a Procorem post or section8finance@kshousingcorp.org.  

CDC Announces Moratorium on Eviction
  
On Sept. 4 the Centers for Disease Control and Prevention (CDC) announced the issuance of an Order under Section 361 of the Public Health Service to temporarily halt residential evictions to prevent the further spread of COVID-19. The order is in effect Sept. 4 - Dec. 31, 2020. 
 
This CDC Moratorium On Evictions is separate from the moratorium provided under the CARES Act, which is still in effect for those properties under forbearance. 
Reminders and resources

Fair Market Rents effective Oct. 1
LIHTC properties electing to maintain rents at or below the Fair Market Rent limit in the LURA should be using the FY2021 limits effective 10/1/2020. Find the guidelines online.

LIHTC annual report notices and compliance fee invoices will be issued soon!   
Watch for the 2020 LIHTC Annual Report Notice and compliance fee invoice to be uploaded to the property’s work center in December.  Both the report and fee are due March 15, 2021. As a reminder, fees for properties in years 1-15 increased in 2020 from .008 to .009 of the annual LIHTC allocated. For properties in year 16 and beyond, the fee remains the same, .004 of the annual LIHTC amount allocated. 


Cost of Living Adjustment (COLA)
The Social Security Administration announced a 1.3 percent COLA beginning January 2021. The increase will also be applicable to SSI, VA, Railroad retirement and Civil Service. Learn more.

COVID-19 Supplemental Payments (CSP)  
All CSP requests from March 27 - July 31, 2020, were approved by HUD and paid out on Oct. 1. We reimbursed approximately $142,000 in COVID-19 related expenses to our Section 8 property owners.